A new phase of Cyprus’s government support scheme for solar hot water systems in residential properties has been launched. The new 2026 scheme was approved by the government in July, and applications are already open. The programme is implemented by the Renewable Energy Sources and Energy Conservation Fund.
For residents of Limassol, the scheme is particularly relevant because the amount of the subsidy depends not only on the applicant’s category, but also on whether the specific property is located in an area officially classified as mountainous or disadvantaged.
How much is the subsidy for a solar water heater
Two main categories are available in 2026:
- Category Η1 — €500 per application, or €900 for mountainous and disadvantaged areas.
- Category Η2 — vulnerable households can receive up to €900.
The total programme budget is €1 million. The subsidy is a fixed amount and does not depend on the price or capacity of the installed tank. If the system costs more, the applicant must cover the difference.
Importantly, the increased €900 payment is not granted simply because a property is located outside a city. Eligibility is determined according to the programme’s official criteria, including the area and postal code. In the Limassol district, settlements included in this category include, for example:
- Agros — postal code 4860;
- Kyperounta — postal code 4876;
- Pano Platres — postal code 4820;
- Moniatis — postal code 4747;
- Lofou — postal code 4716;
- Omodos — postal code 4760;
- Vouni — postal code 4772;
- Apesia — postal code 4541.
These are only examples, not a complete list. Before submitting an application, the postal code of the specific property should be checked.
Main condition: approval first, installation afterwards
The most important detail of the programme concerns the order of the process. Applicants cannot install a solar water heater first and then apply for the subsidy. Preliminary approval must be obtained before installation begins. Starting installation work before such approval is issued is grounds for rejecting the application. In addition, Category Η1 specifically subsidises a complete system, meaning a set consisting of a hot water tank and solar panels. Replacing only the tank or only the panels does not qualify under this scheme.
The equipment must comply with the programme’s technical requirements and be included in the official list of eligible equipment. The work must also be carried out by certified professionals included in the list of participating installers. The recommended sequence is therefore:
- Check whether the property and applicant meet the programme requirements.
- Confirm whether the property qualifies for the increased €900 subsidy.
- Submit an application for preliminary approval.
- Wait for approval.
- Select a participating certified installer.
- Install eligible equipment.
- Keep invoices, proof of payment and any other required documents.
What to check before ordering the system
Before signing a contract with an installer, it is advisable to request a written quotation. Ideally, it should separately show the cost of the tank, solar panels, installation and any additional work.
This makes it easier to compare offers from different specialists and understand immediately how much you will need to pay yourself after deducting the subsidy. It is also worth checking:
- whether the selected equipment is included in the official list;
- whether the installer is included in the programme’s list of participants;
- whether the property meets the scheme requirements;
- which documents will be required for the final application process;
- whether a commercial warranty is provided for the installed equipment and work.
Until when are applications accepted
Officially, the 2026 programme accepts applications until 20 December 2026 or until 2,000 applications have been submitted, whichever comes first. It is therefore not advisable to wait until December: if the application limit is reached earlier, the scheme will close ahead of schedule.
For Limassol residents, the main rule can be summarised simply: obtain preliminary approval first, and only then install the solar water heater. Otherwise, even equipment that meets the technical requirements may not qualify for the government subsidy.